Investment Strategy
The Aston/MB Enhanced Equity Income Fund places primary emphasis on the generation of income. Management pursues this objective by investing in dividend-paying stocks and writing covered call options on a substantial portion of the underlying portfolio.
Objective
The Fund seeks total return through a combination of a high level of current income and capital appreciation.
Note: By selling covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying stock above the exercise price, but continues to bear the risk of a decline in the stock. A liquid market may not exist for options held by the Fund. If the Fund is not able to close out an options transaction, it will not be able to sell the underlying security until the option expires or is exercised. While the Fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below a stock's current market price. Premiums from the Fund's sale of call options typically will result in short-term capital gain taxes, making it ill suited for investors seeking a tax efficient investment.
| Fund Overview |
| Inception Date |
1/15/2008 |
| Ticker |
AMBEX |
| Cusip |
00080Y751 |
| Load |
None |
| Fund Statistics (as of
9/30/2008) |
|
|
$15,831,435.87 |
| Expense Ratio |
1.10% |
| Turnover |
23% |
| Minimum Investment |
$2,500 |
| Weighted Average P/E |
21.24 |
| Weighted Average P/B |
2.95 |
| Median Market Capitalization (in millions) |
$36,357.00 |
|
|
| Sector Breakdown (as of
10/31/2008) |
| Information Technology |
17.59% |
| Consumer Staples |
16.75% |
| Financials |
15.50% |
| Industrials |
14.34% |
| Consumer Discretionary |
10.83% |
| Materials |
8.40% |
| Telecommunication Services |
5.60% |
| Cash Equivalents & Other |
5.55% |
| Health Care |
3.03% |
| Energy |
2.41% |
Past performance does not guarantee future results. Investment return and principal value of mutual funds will vary with market conditions, so that shares, when redeemed, may be worth more or less than their original cost.
Covered Call Option Risk: By selling covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying stock above the exercise price, but continues to bear the risk of a decline in the value of the underlying stock. While the Fund receives a premium for writing the call option, the price the Fund realizes from the sale of stock upon exercise of the option could be substantially below its current market price.
A liquid market may not exist for options held by the Fund. If the Fund is not able to close out an options transaction, the Fund will not be able to sell the underlying security until the option expires or is exercised.
Tax Risk: The Fund expects to generate premiums from its sale of call options. These premiums typically will result in short-term capital gains for federal income tax purposes. The Fund is not designed for investors seeking a tax efficient investment.